Billionaire investor Bill Ackman has launched a $64.3 billion takeover bid for Universal Music Group (UMG) through his investment vehicle, Pershing Square, per bbc.com. The proposed merger would see the world’s largest music company, currently listed in Amsterdam, move its primary listing to the United States. Universal, which represents global stars including Taylor Swift, Sabrina Carpenter and Kendrick Lamar, has yet to formally respond to the offer.
The offer from Pershing Square, which already holds a minority stake in UMG, seeks to address what Mr Ackman described as a “languishing” share price. While praising the company’s management and artist roster, the billionaire argued that the stock has dramatically underperformed due to its current listing structure and market uncertainties. He contends that a US listing would better reflect the company’s value and its ability to navigate growth opportunities in artificial intelligence.
Market analysts noted that while UMG remains a dominant force, representing nine of the top 10 global recording artists of 2025, it faces significant headwinds. Growth in music streaming has slowed recently, affecting royalty payments from platforms such as Spotify and Apple Music. Additionally, the industry continues to grapple with the proliferation of AI-generated “deepfake” tracks and disputes over digital licensing fees.
Universal’s stock price reacted sharply to the news on Tuesday, soaring by nearly 30% in early trading before settling to a 10% gain by the afternoon. Beyond its artist roster, the company’s assets include the historic Abbey Road studios and major labels such as EMI and Island Records. Pershing Square’s broader portfolio currently includes significant holdings in tech giants Google, Meta, and Amazon.
Mr Ackman also highlighted historical issues weighing on the valuation, including uncertainty regarding an 18% stake held by the Bolloré Group. The proposal follows Mr Ackman’s long-standing campaign to float the company in New York, a move management had previously delayed.
The bid comes at a transitional period for the music industry, which has recovered from the era of piracy through streaming but now faces “cut-throat” competition for consumer attention. Universal recently settled a high-profile dispute with TikTok over royalty rates and AI protections, underscoring the ongoing tension between content owners and social media platforms.
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Mr Ackman stated that UMG management had done an “excellent job” building a world-class roster, but argued that the current stock performance could be “addressed with this transaction.” Meanwhile, AJ Bell’s head of markets, Dan Coatsworth, cautioned that while UMG appears to be a “money-making machine” on paper, it remains heavily dependent on third-party platforms for revenue.
•Featured image: Taylor Swift is one of the music artists signed to Universal Music Group/Getty
